Editor’s Note
This analysis highlights the robust growth trajectory of the synthetic diamond market, driven by industrial demand and a shift toward sustainable alternatives. The data underscores a significant transition in both technology and consumer preferences.
The synthetic diamond market is projected to grow from USD 25.49 billion in 2025 to USD 27.26 billion in 2026, and is expected to reach USD 38.15 billion by 2031, registering a CAGR of 6.95% from 2026 to 2031.
Increasing demand from telecommunications, electric vehicles, aerospace, and high-precision manufacturing sectors is accelerating revenue streams, while persistent calls for sustainability are steering customers from mined diamonds to lab-grown ones. The Asia-Pacific region already supplies the majority of diamond wafers and superabrasive tools, benefiting from government incentives and a surge in electronics exports. Competition is intensifying as technology-focused new entrants expand production capacity for Chemical Vapor Deposition (CVD) methods capable of achieving device-grade purity, posing a direct challenge to the established High-Pressure High-Temperature (HPHT) model. Meanwhile, luxury brands in Gulf Cooperation Council (GCC) countries are leveraging lab-grown fancy-colored stones to satisfy environmentally conscious consumers, expanding the market beyond traditional bridal jewelry. Regulatory uncertainty and inconsistent certification standards remain key headwinds, especially as retail price corrections undermine perceptions of resale value among end-users, although performance-driven high-tech sectors continue to protect margins.
CVD single-crystal wafers, with a thermal dissipation capability of 22 W/cm*K, enable the realization of smaller, more reliable high-frequency filters that support dense 5G and future 6G networks. DARPA-supported research on large-area substrates is transitioning to commercial foundries, particularly in China, South Korea, and Taiwan, where vertically integrated OEMs are incorporating diamond die-attach layers inside massive MIMO (mMIMO) antennas. Local vendors report reduced power consumption and extended base station lifespans, delivering measurable Total Cost of Ownership (TCO) benefits to operators.
Precision grinding wheels with polycrystalline diamond coatings are essential for cutting silicon-rich anode materials, laser scribing separator films, and surface finishing aluminum casings. Gigascale battery plants in the US and Europe now specify diamond tools for over 70% of high-speed machining stations, with per-vehicle-platform unit consumption rising. Wafer-based inverters from diamond foundries are one-sixth the size of existing designs yet more powerful, demonstrating how enhanced thermal and electrical properties boost drivetrain efficiency.
India’s Central Consumer Protection Authority mandates retailers to disclose production origin and cultivation method on invoices and promotional materials, driving up compliance costs and forcing supply chain transparency. In the US, Jewelers Vigilance Committee (JVC) guidelines similarly strengthen audit obligations, compelling companies to invest in spectroscopic analysis and automated screening equipment. Divergent regional regulations complicate cross-border transactions, posing legal risks for distributors.
In 2025, rough stones accounted for 65.30% of the synthetic diamond market, driven by expanding demand in construction, oil & gas drilling, and precision cutting tools—all applications leveraging unparalleled hardness and thermal conductivity. According to USGS records, domestic production reached 160 million carats (worth USD 53 million), a 5% year-on-year increase.
Polished stones, though smaller in production volume, represent the fastest-growing category with a CAGR of 9.35%. Broader consumer acceptance, improved design flexibility, and advances in plasma post-processing techniques that enhance color saturation are driving increased transaction volumes across mid-tier jewelry chains. The Gemological Institute of America (GIA) reports that CVD product submissions now outnumber HPHT samples, with fancy colors and stones over 3 carats showing a sharp year-on-year increase. Over the forecast period, polished gems are expected to gain shelf space in omnichannel retail even as wholesale prices stabilize.
The Asia-Pacific region accounted for 55.40% of global revenue in 2025 and is projected to continue the fastest regional growth with an average annual CAGR of 8.05% through 2031. Production clusters in Henan and Shandong provinces (China) and Gujarat (India) host vertically integrated operations spanning seed crystal synthesis to finished jewelry. China’s dominance in lab reactor equipment provides cost advantages, while India’s removal of the 5% import duty on rough diamonds is attracting foreign joint ventures.
North America remains pivotal for high-performance applications, particularly in quantum sensing and wide-bandgap power electronics. Adamas One’s South Carolina facility (currently operating 12 reactors producing 3,000 carats of rough stones monthly) emphasizes intellectual property-protected growth protocols to secure aerospace and medical contracts.
Europe maintains stability while retaining an innovation-oriented stance. German toolmakers and French photonics startups incorporate diamond inserts to meet automotive lightweighting demands. The UK’s academic ecosystem, notably the National Quantum Computing Centre, is advancing nitrogen-vacancy (NV) defect engineering for secure communications. Outside Europe, the Middle East is positioning Dubai as a hub for trading and production.
